Libs, Labor thrash out new line-ups

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Prime Minister John Howard has created a super department of
Human Services to deliver Medicare and welfare payments as part of
a reshuffle of the ministry for his fourth term.

Concentrating responsibility for payments under one minister may
help the Government tackle its long-running family debt payments
problem, which Labor made an issue in the last term.

The new role will be taken by Small Business Minister Joe
Hockey. It will not be in the cabinet but is a promotion for the
ambitious NSW frontbencher. Mr Hockey's job includes responsibility
for government payments from Medicare and the Health Insurance
Commission, Centrelink and disability support.

The ministers for health and family services will remain in
charge of policy development.

As Mr Howard, just back from his trip to Jakarta for the
presidential inauguration, put the finishing touches to his
ministry, Labor factions brawled over the composition of Mark
Latham's new front bench.

Simon Crean's future hung in the balance last night after he was
dumped from the front bench by his Victorian Right faction. But
Labor Leader Mark Latham put his authority on the line to demand a
frontbench position be found for Mr Crean, urging the Centre
faction to sacrifice one of its three places.

The Centre was to meet again early this morning to decide
whether one of two Victorian MPs - current frontbencher Gavan
O'Connor or aspirant Bob Sercombe - would be forced aside for Mr
Crean. The former Labor leader, who went into the Victorian ballot
expecting to win back his position, lost by one vote to
frontbencher Kelvin Thomson.

Yesterday's battles open new divisions within Labor in Victoria,
with Mr Crean livid at the people he promoted for deserting him -
Mr Thomson and Nicola Roxon - while other Victorians are angry at
the prospect of being shoved aside for Mr Crean.

Caucus will endorse the front bench today but Mr Latham will not
announce shadow portfolios until Monday.

The critical post of shadow treasurer is still uncertain, with
Mr Latham still to choose between Victorian Julia Gillard, his
close ally, and West Australian Stephen Smith.

Last night it appeared there would be little or no change to the
jobs of cabinet ministers. Mr Howard's room for an overhaul was
limited by changes before the election that brought Senators Helen
Coonan and Ian Campbell into the cabinet. One new face in the
ministry will be Queensland National De-Anne Kelly, who takes the
frontbench spot left by defeated Minister for Children Larry
Anthony.

Victorian Fran Bailey is one of the winners, moving up from
Employment Services to Mr Hockey's Small Business and Tourism
portfolio.

Queenslander Gary Hardgrave is expected to get a new vocational
education and training job, in charge of Mr Howard's election
project of 24 new technical colleges. Science Minister Peter
McGauran will move to Mr Hardgrave's old portfolio of Citizenship
and Multicultural Affairs.

Among limited casualties is expected to be parliamentary
secretaries Judith Troeth and Peter Slipper, and possibly Veterans
Affairs Minister Danna Vale. Queenslander Peter Dutton is believed
to have been promoted to the ministry, which will be sworn in on
Tuesday.

Meanwhile, after Labor factional meetings in Canberra, a swag of
new faces claimed support for promotion last night. The Left
promoted three women - South Australian senator Penny Wong, 36,
Sydney MP Tanya Plibersek, 34, and Queensland senator Jan McLucas,
46.

Newly elected NSW MP Tony Burke, 34, secured a place, as did
Queensland senator Joe Ludwig, 45. Brisbane-based MP and former
defence spokesman Arch Bevis will also return to the front bench
after defeating Victoria's Anna Burke for the Right's sole
"floating" position that is not allocated to any state.

Under a national deal, the Victorian Right was allocated three
places, forcing four shadow ministers into a competition. Stephen
Conroy, Nicola Roxon and Kelvin Thomson prevailed.